Ontario court approves cross-border gaming programs

The Ontario Court of Appeal has voted in 4-1 favor of allowing a province to run an online gaming program outside of its border as long as the province itself is "conducting and managing" operations.

The decision was described as a "major win" for operators by figures such as Kinectify Global Head of Advisory Services Derek Ramm, as the confirmation "opens the door" for cross-border play, innovation and global engagement under provincial oversight.

"We conclude by noting that our opinion the Proposed Model would be lawful is predicated on: assumptions that are embedded in the reference questions and appended Schedule; the evidence, argument and submissions of the AGO; and our understanding of how the Proposed Model would operate, based on both of the foregoing," the Ontario Court of Appeal stated.

"These assumptions include that...the current iGaming Scheme is lawful...under the Proposed Model, players located outside of Ontario but within Canada will not be permitted to participate in games or betting in the absence of an agreement between Ontario and the province or territory in which those players are located; and...as the Schedule specifies, under the Proposed Model 'iGaming Ontario will continue to conduct and manage the iGO Sites through its agents.'"

The Court of Appeal also stated it is "unclear" whether Ontario will enter into agreements with international operators or foreign state gaming regulators, which would be required to meet such stipulations prior to launching business across the province.

On October 8, The Alcohol and Gaming Commission of Ontario (AGCO) issued a monetary penalty of CA$105,000 ($76,500) to Score Media and Gaming, known as theScore, for alleged failures to meet the province's responsible gambling standards

The AGCO stated the customer lost nearly CA$100,000 in the first month and exhibited several indicators of high-risk play, including repeated requests for bonuses, loss-chasing behavior and emotional distress.